I Have My Own Business But Have Debt at Work and Home I Can’t Handle Anymore. – Bill

“Dear Michael,

Two lines of debt, but both carried on personal line of credit. 1st is personal expense’s (unsecured about $60k), the other is business debt (self employeed unsecured, about $30k). Interest rates are high and dragging the pay off. The pass 48months, have paid $128,000.00 in CC payments, to knock down $27,000.00 on balance owed. Can not continue this. I have the means to pay $2,700.00 per month for just this. but can’t pull a debt loan, because debt/income ratio, and extended.

Looking for options to get pass this 21% intrest rate, or any refinance program to assist. Is debt settlement a real option without to much damage to credit rating. Will be sending child to college in 5 yrs, so need a credible resolution.


Hi Bill,

I would recommend you fully investigate two options:

Debt Management Plan – Connecting with an AACC member who offers a DMP will likely afford you the ability to reduce your interest rates so that more of your money is going to pay down the principal balance. A DMP can last 4 to 5 years. Given the information you provided, I estimate your monthly payment in a DMP will hover somewhere around $2,250.00. This would be below what you stated you have available to pay down the 2 debts. When planning for the potential need to qualify for plus loans or cosigning for student loans, the DMP option is in line with your ability to get approved.

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Debt Settlement – This option should be viewed as a rip the band-aid off approach to your debt. It is an aggressive method for knocking down debt when your alternative is bankruptcy. I don’t know that you are at that point unless you first determine you cannot do a DMP. Before I would be able to tell you what you are up against and whether or not this would be a good path for you, I have some questions:

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Who are the accounts with?
What state do you live in?
What other revolving accounts do you have open and what are the balances?

These questions are just a start. If you can answer them in the comment section below I will be able to respond with a rough estimate of funds you will need and the timing you need to be aware of to keep your risk low. Given the 5 year time frame you mentioned, I would not expect debt settlement to hinder your ability to qualify for plus loans or other student loan products.

Bankruptcy is an option, but given the cash flow you mentioned, I suspect this will not be the path you would take unless your situation were to deteriorate. I would want to know if you have underwater real estate or other issues where bankruptcy would make strategic sense. If the only areas of concern are the 2 lines you mention, I doubt bankruptcy would be a good fit.

Please answer my questions above in the comments below.

Michael Bovee has worked with financially challenged consumers for the past 17 years and is a recognized expert in his field. Michael founded Consumer Recovery Network (CRN) in 2006. CRN offers debt settlement services and educational resources nationwide. He has served as its president since 2006.

If you have a debt related question you’d like to ask, just use the online form.

Michael is an experienced debt expert and can be found online at Consumer Recovery Network.
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